06 March 2013 04:34 [Source: ICIS news]
SINGAPORE (ICIS)--Palm oil freight rates from southeast Asia to India and China are not being impacted by military attacks in Malaysia’s Sabah state, according to two southeast Asian shipping sources.
“We see prices so far are rather stable. No significant impact,” said a Singapore-based shipowner.
Malaysian military forces are currently mounting an attack on an armed Filipino group in Sabah.
“Lahad Datu [in Sabah] is one of the many loading areas in Malaysia. So, these attacks so far are not affecting sentiment in any big way,” said another southeast Asian charterer.
However, the charterer did not rule out a palm oil freight increase in the coming weeks, if the attacks are prolonged.
“Things are still happening quite fast. Anything could change if the attacks are prolonged. Let’s wait and see,” the charterer said.
According to Bernama news agency, Sabah accounted for a quarter of Malaysia's 18.8m tonnes of crude palm oil production last year.
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